Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Denver Gold Forum 2016
18 slides from Northern Star Resources's conference presentation, Sep 19, 2016
Slide 1: Northern Star Resources Denver Gold Forum
For personal use only Northern Star Resources Denver Gold Forum An Australian gold miner – for global investors September 2016
Slide 2: Disclaimer – Competent Persons Statements
Disclaimer Competent Persons Statements The information in this announcement that relates to mineral resource estimations, data quality and geological interpretations for the Company’s Paulsens, Ashburton, Jundee and Plutonic Project areas, is based on For personal use only information compiled by B
Slide 3: Third biggest Australian listed Gold Miner
Third biggest Australian listed Gold Miner Northern Star is an ASX100 Australian For personal use only stock exchange listed gold miner Paulsens & Ashburton Strong balance sheet; no debt; A$326M Operations in cash & equivalents 30 June 2016 +3Moz Gold Camp Central Tanami Project +5Moz Gold Camp Mark
Slide 4: FY16 – Another standout year
FY16 – Another standout year Key Operational Outcomes For personal use only 561,000oz Gold Sold Total Reserves Resources increased at AISC of US$758/oz increased by 33% to to 9.25Moz 2Moz Key Financial Outcomes Net Profit After Tax Underlying free cash Dividends increased up 65% to a record flow of
Slide 5: Efficient Capital Allocation – 5 Year Return on Invested Capital
Efficient Capital Allocation - Bucking the 5 year trend Superior returns on invested capital continues to be the focus driving investment decisions For personal use only Capital is forced to compete internally for project funding to ensure NST continues to generate a sector leading Return on Equity
Slide 6: Efficient Capital Allocation – 5 Year Return on Equity
Efficient Capital Allocation - Bucking the 5 year trend Superior returns on invested capital continues to be the focus driving investment decisions For personal use only Capital is forced to compete internally for project funding to ensure NST continues to generate a sector leading Return on Equity
Slide 7: Efficient Capital Allocation – FCF Yield to Enterprise Value
Efficient Capital Allocation - Bucking the 5 year trend Superior returns on invested capital continues to be the focus driving investment decisions For personal use only Capital is forced to compete internally for project funding to ensure NST continues to generate a sector leading Return on Equity
Slide 8: Efficient Capital Allocation – Global AISC Cost Curve
Efficient Capital Allocation - Bucking the 5 year trend Superior returns on invested capital continues to be the focus driving investment decisions For personal use only Capital is forced to compete internally for project funding to ensure NST continues to generate a sector leading Return on Equity
Slide 9: Efficient Capital Allocation – Capital Intensity Ratio
Efficient Capital Allocation - Bucking the 5 year trend Superior returns on invested capital continues to be the focus driving investment decisions For personal use only Capital is forced to compete internally for project funding to ensure NST continues to generate a sector leading Return on Equity
Slide 10: Future Global Gold Trends
Future Global Gold Trends Substantial reduction in major discoveries world wide; In 2015 greenfield discoveries cost For personal use only US$189 per ounce, NST costs were US$14 per ounce for the same period Majority of future gold production is heading underground, in Australia 56% is now from unde
Slide 11: Northern Star continues to buck the global trend
Northern Star continues to buck the global trend Production amongst the majors is set to decline over the next three years by 8%, whilst NST For personal use only is growing gold production by 20% in the same period and with the potential to outperform Production centres with scale (+200,000ozpa) an
Slide 12: FY17: Production and Cost Guidance
FY17: Production and Cost Guidance Total gold production of 485,000-515,000oz at an AISC of US$728-$765/oz For personal use only A$130M to be spent on investing capital following on from the great successes in FY16 A$60M for targeted drilling to bring more Resources into mine plans and convert
Slide 13: Jundee: A big mine…..and getting bigger
Jundee: A big mine…..and getting bigger FY16: Resources 1.25Moz and Reserves up 21% to 720,000oz, even after mining 228koz FY16: 210,000oz sold at an AISC of US$733/oz For personal use only FY17: Guidance 220,000-230,000oz at an AISC of US$728-$765/oz 6.75Moz of continuous gold production over the p
Slide 14: Kalgoorlie Operations: Rapid, low-cost growth
Kalgoorlie Operations: Rapid, low-cost growth FY16: Resources 3.6Moz, up 17% and Reserves up 0.9Moz up 48%, after mining 216koz FY16: 207,000oz sold at an AISC of US$610/oz For personal use only FY17: Guidance 200,000-210,000oz at an AISC of US$692-$728/oz 6.45Moz of gold production over the past 23
Slide 15: Paulsens: The Founding Asset
Paulsens: The Founding Asset FY16: Resources: 0.3Moz and Reserves 0.1Moz, after mining 91koz FY16: 80,000oz sold at an AISC of US$800/oz For personal use only FY17: Guidance 65,000-75,000oz at AISC of US$874-$910/oz 0.85Moz of continuous gold production over the past 11 years, averaged of 75kozpa wi
Slide 16: Central Tanami Project: Next Tier of Growth
Central Tanami Project: Next Tier of Growth Previous Newmont asset which produced 2.1Moz over 18 years to 2005, average of 120kozpa with a peak year of 170koz; only mined mineralisation via pits to a deep of <125m For personal use only Production ceased after mining of the Groundrush pit, where 610k
Slide 17: Why Invest in Northern Star
Why Invest in Northern Star Highly profitable: Net profit after tax up 65% to A$151.4M in FY16; underlying free cash flow of A$224.3M; dividends up 40% from A5¢ps to A7¢ps For personal use only Strong balance sheet: no debt; A$326M in cash & equivalents (30 Jun 2016) Emphasis on financial returns: P
Slide 18: Northern Star Resources – Contact Details
For personal use only Northern Star Resources An Australian Mid Cap gold miner – for global investors Contact Details: September 2016 Luke Gleeson – Investor Relations +61 8 6188 2100 Email – info@nsrltd.com / Website – www.nsrltd.com